The dominant strategy for the firms in the duopoly market and establishing the equilibrium strategy combination and the Nash equilibrium for the market. Concept Introduction: Dominant Strategy - The strategy for a player for which he does better in terms of payoffs/profits irrespective of the strategy of the rival, is said to be his dominating strategy. Nash Equilibrium - The strategy combination for the two players which is mutually agreed upon for higher returns such that no one player has an incentive to deviate from it unilaterally, is said to be a Nash Equilibrium. FORD SELLING PRICE → $4,000 $8,000 $12,000 CHEVROLET SELLING PRICE↓ $4,000 8,8 12,6 14,2 $8,000 6,12 10,10 12,6 $12,000 2,14 6,12 7,7

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Explain and evaluate the impact of legislation on the U.S. criminal justice system, specifically on the prison population and its impact on poverty and the U.S. economy. Include significant elements and limitations such as the War on Drugs and the First Step Act.

Answer 1

Question

Chapter 10, Problem 3.9PA

To determine

The dominant strategy for the firms in the duopoly market and establishing the equilibrium strategy combination and the Nash equilibrium for the market.

Concept Introduction:

Dominant Strategy- The strategy for a player for which he does better in terms of payoffs/profits irrespective of the strategy of the rival, is said to be his dominating strategy.

Nash Equilibrium- The strategy combination for the two players which is mutually agreed upon for higher returns such that no one player has an incentive to deviate from it unilaterally, is said to be a Nash Equilibrium.

FORD SELLING PRICE → $4,000 $8,000 $12,000

CHEVROLET SELLING PRICE↓

$4,000 8,8 12,6 14,2

$8,000 6,12 10,10 12,6

$12,000 2,14 6,12 7,7

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